Impact of Business Analytics and Innovation on Firm Performance

Some study has been done on the topic of business analytics, but not nearly enough has been done to build and communicate a general knowledge of the relationship between analytics and performance. This research presents a comprehensive framework to describe the many forms of business analytics, their interrelationships, and the effects of business analytics use on innovation and financial performance, with the goal of filling the resulting knowledge gap. The empirical analysis was performed on sample of SMEs industries present in Mumbai. In order to examine the potential for a causal connection between the research constructs, the study employs a structural equation modelling (SEM) analysis with a Using product and process innovations as a second-order factor, business analytics as an exogenous independent variable, and firm performance as a dependent variable, this study analysed the relationship between innovation, exogenous independence, and firm performance (endogenous). The results of research confirmed that business analytics are important predictor of innovation and performance of SMEs.